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IFRS 18 in Practice: Rebuilding the Income Statement for 2027

What replaces IAS 1, how every line is classified, and the 2026 steps to get your first IFRS 18 statements right. Presented by AccountingTutorAI, an official IFRS Foundation licensee.

Created byAccountingTutorAI
All LevelsUpdated Oct 27, 2026

What You'll Learn

  • check_circleExplain why the IASB replaced IAS 1 and what IFRS 18 leaves unchanged
  • check_circleClassify income and expenses into the five IFRS 18 categories and build the two required subtotals
  • check_circleApply the main business activity assessment and explain its effect on operating profit
  • check_circleIdentify management-defined performance measures using the three-gate test and prepare the required MPM note
  • check_circleApply the aggregation, labelling and expense-presentation rules (nature, function or mixed)
  • check_circleDescribe the consequential changes to cash flow and EPS, the retrospective transition requirements and the 2026 readiness steps

About This Course

This practitioner-level course explains IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1 for annual periods beginning on or after 1 January 2027. It focuses on the redesigned income statement: five categories (operating, investing, financing, income taxes and discontinued operations) and two new required subtotals, operating profit and profit before financing and income taxes.

Using a worked manufacturing case, you will see how each line is classified, apply the three-gate test for management-defined performance measures (MPMs), and learn the consequential changes to the cash flow statement and earnings per share. The course also covers aggregation, nature or function presentation, interim reporting and transition, and ends with a 2026 readiness checklist for consolidation systems and chart of accounts mapping. A learner handout is included.

Topics covered

  • Classifying income and expenses into the five categories
  • The operating category as the residual, and the main business activity assessment
  • Operating profit and the profit before financing and income taxes subtotals
  • Management-defined performance measures: the three gates, the single note and the reconciliation
  • Aggregation, disaggregation and the end of the unexplained “other” line
  • Nature, function or mixed expense presentation and the paragraph 83 note
  • Consequential changes to the cash flow statement (IAS 7), earnings per share (IAS 33) and interim reporting (IAS 34)
  • Retrospective transition and the comparative reconciliation
  • A 2026 readiness checklist for consolidation systems and account mapping

Presented by AccountingTutorAI, an official IFRS Foundation licensee, drawing on the text of IFRS 18 and the IFRIC agenda decisions issued since.

Course Content

2 activities • 1 videos • duration: 1h 10m

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IFRS 18: Mastering the New Income Statement1 videos • 1 quiz • 1.2 hours
  • videocamIFRS 18: Mastering the New Income Statement
    Duration 70:46
  • quizIFRS 18: Mastering the New Income Statement Quiz
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Final Assessment1 quiz

Your Instructor

AccountingTutorAI

Our vision: IFRS applied with confidence everywhere. Official IFRS Foundation licensee building AI tools, checklists and training for professionals and students.

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AccountingTutorAI is an official IFRS Foundation licensee building practical IFRS tools for finance professionals, audit and accounting firms, and students. Our professional tools: an AI IFRS reference assistant that answers your scenario with the licensed paragraph text of IFRS Accounting Standards; year-end and interim disclosure checklists with preparer, reviewer and auditor sign-off; an accounting memo generator for drafting IFRS position papers; 12 IFRS calculators; and decision trees for complex standards. For students and exam candidates, the platform adds practice questions with worked reasoning, concise standard summaries and exam-technique guides. Our courses turn the standards into working practice: structured walkthroughs built around worked examples, paragraph references and the preparer's decisions, with a learner handout to keep.

Credit Information

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We are a registered provider with 300+ associations and regulatory bodies worldwide. We operate across 27 global markets including Canada, the US, Australia, and the UK. Every course page clearly displays its specific accreditations. Upon completion, you receive a professional certificate that can be validated online. Our certificates include all necessary accreditation details, credit hours, and completion dates, and are formatted specifically to meet the submission requirements of most global regulatory bodies.

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